EUR/GBP Recovers to Move Back to 0.7925 Resistance
pair rebounded from early morning lows of 0.7890 and added on to its
strength during early European session to currently trade at day's peak
With an empty data docket from the UK, traders seems to drive the British Pound lower on the back of looming uncertainty over 'Brexit' referendum on June 23.
Last week, the pair's reversal from weekly high level of 0.7947 continued finding strong support near 50-day SMA region, near 0.7865-60 area. The pair's repeated attempt to rebound from 50-day SMA gained momentum on Monday, lifting it back to 0.7925-30 resistance area marking 50% Fibonacci retracement level of 0.8117-0.7735 downfall. A convincing strength above this immediate resistance now seems to set the stage for extension of the pair's near-term upward trajectory.
Technical levels to watch
On a sustained trade above 0.7925-30 resistance, the pair might immediately aim towards testing two-week high resistance near 0.7947-50 area, which is closely followed by 61.8% Fibonacci retracement level resistance near 0.7970 level. A clear break-through 0.7970 resistance now seems to assist the pair to reclaim 0.8000 psychological mark and head towards its next major resistance near 0.8065-70 zone (recent weekly closing high).
On the flip side, reversal from current resistance area and a subsequent drop back below 0.7900 handle might force the pair to break-through day's low and test 38.2% Fibonacci retracement level support near 0.6880 level before eventually dropping back to a very strong 50-day SMA support near 0.7865-60 zone.